Jeffrey says that Apple is going to be left in an interesting position.

Either Apple can force Verizon to buy 19 million iPhones it can't sell, or it can find wiggle room to let Verizon off the hook.

If it forces Verizon to buy the phones, then it's stuffing the channel, forcing Verizon to take on a year's worth of phones that will be old before they can be sold. Plus, Apple and Verizon are negotiating their next deal. Verizon will have leverage in those negotiations.

If Apple lets Verizon off the hook, then what about its other carrier partners?

What if Sprint, which is believed to have a similar deal, can't sell enough iPhones to meet its commitments? Can it get out of its contract?

The implications of what's happening between Apple and Verizon are far-reaching for the iPhone business model.

Apple's business model for the iPhone was built on big commitments from carriers, says Jeffrey. Apple's iPhone business growth has slowed considerably in the last few years. This could leave other carriers with shortfalls on their commitments, which means Apple is going to have to deal with this situation over and over again.

It seems like a big problem for Apple.

But, the company's stock isn't getting crushed on this news. So, either, it's not really a big deal, or investors are totally missing something big, or, this was already "priced" into the stock, as they say. (The fact that the iPhone is slowing isn't exactly new news.)

Update: As a commenter notes below, there is something weird about these numbers. It suggests a very agressive sales goal from Verizon to hit the numbers outlined in these filings. It's entirely possible Jeffrey is misreading things.

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So let me get this straight. Verizon agreed to sell almost 40 million iphones in 2013 when apple is expected to sell less than total 200 million this year? That doesn't add up. These analysts can't analyze their way out of a paperbag. Maybe this time for a change the market is simply ignoring the bs these morons come up with on a constan basis.

We talked about this earlier on Twitter so I'm surprised that you have since somehow reached the conclusion that this is such a disaster for Apple that it "has serious implications for the future of the company." Wow. So bankruptcy proceedings will soon follow? Even if this story is true, pretty funny how this wouldn't be a negative for Verizon, but a huge negative for Apple. Alrightly.

Here's the problem with this Verizon/iPhone stuff.

We have two people estimating quite a few numbers to reach their conclusions.

1) We have no clue as to what Verizon's actual commitment is with Apple. Instead, they are looking at some SEC documents, seeing big commitment numbers begin when iPhone went on sale and are now simply assuming most of the company's commitments are related to iPhone.
2) We have no clue as to what the language within Verizon's iPhone commitment contract says. It is not that big of deal if Verizon simply commits to buying iPhones in 2014. Contrary to what you wrote, there would be no channel stuffing involved. The commitments are simply pushed out.
3) As ellroy already stated, the math just doesn't support these two analysts. Verizon management would not have agreed to sell so many iPhones in 2013. May come as a shock, but Verizon knows their business somewhat well and it's not hard to see that they wouldn't be able to sell an iPhone to almost 30% of their entire client base in 2013.